Business confidence rises to new high - LMD
“Business confidence surged to an eighteen-month high, as the
security forces reportedly gain ground in the Wanni,” says LMD, in its
“The unique index that measures business confidence in this country
shot up once again, for the third month in a row. In fact, it is now at
an 18-month high. Businesspeople, it seems, are now riding high on hopes
that the war in the north is winnable,” it states.
Visual of six-months BCI graph
According to the magazine, the LMD-Nielsen Business Confidence Index
(BCI), which is the only measure of business confidence in this country,
shot up to 109 last month.
The October issue of LMD says: “We’re told by the pollsters that
expectations of an end to the war in the not-too-distant future may be
among the principal reasons for the sudden surge in confidence in the
last two months.
In addition, the downward slide in oil prices (from US$ 147-plus in
July, to around 100 dollars early last month) may also be at the centre
of the revival in biz sentiment, but whether or not this is a temporary
phenomenon we will not know in the short term.”
It explains that “predictions at the time of going to press suggest
that there may now be relative stability in the oil markets of the world
- and this augers well for poorer nations such as ours, grapping as we
are with numerous country risks not least of which is the armed conflict
in the north” - and also that there’s been “some respite, at long last,
on the inflation front too”.
According the magazine, there’s also been a revival of confidence in
the Sri Lankan economy, with “nearly a third of respondents to the
exclusive poll now say that the economy will improve, which is a
near-doubling of the outcome of a month ago, more than double that of a
year ago and the most confident they’ve been about the national economy
since October 2006”.
The October issue of LMD is now available at supermarkets, retail
shops and bookstores island-wide - with new chamber chief Jayampathi
Bandaranayake featured on its cover.